Originally Posted by
Sailor
because we are going to implode, and disappear altogether.
Millions of people and companies every hour make decisions to buy or sell securities. Buy crappy companies (in 2010 it was us that even some of our own coworkers didn't give us a year), and others selling apple after SJ die.) people buying FB (me) on day one, and selling 10 bucks cheaper. then buying NK again at 17.28 to get ready to sell next week at 23 (fingers crossed).
Oak-tree is just getting out an cashing in. That's all I know, since I don't seat on the board.
Some people may claim knowledge, but they just speculate with negative stuff because it triggers some weird juice in their brains.
Nobody know, except for oaktree.
There are roughly 71 million shares outstanding of Spirit Airlines stock. 15.6 million of those shares were issued to the public upon completion of the IPO in May 2011. This left roughly 55.4 million "restricted" shares, if you will, in the hands of Oaktree, Indigo, and others after the IPO.
Oaktree has been selling off those "restricted" shares over the past year. They are now part of the public domain, or float.
Oaktree still has a small stake in Spirit Airlines. They just offered 9.4 million common shares to the public. They still hold roughly 3.6 million restricted shares (not included in the float).
Its my understanding that the stock offered last Tuesday was part of Oaktree's restricted holdings which are now to be publicly traded. The issuance of stock last Tuesday could result in dilution as LeftHanded more accurately described than I could. I think by using the term "sell" rather than "issuance," I created some confusion.
It doesn't mean there's gonna be a purchase of Spirit by another entity. I was just trying to explain that dilution could lead to possible buyout interests when the market cap is perceived to be overvalued.
The entire industry is overvalued and hence, some analysts have started recommending investors sell their airline holdings based upon peak industry load factors and peak RASM. Spirit is the exception.
Here's a link to NASDAQ's holding summary for SAVE. I find it to be pretty accurate and up-to-date:
Spirit Airlines, Inc. (SAVE) Institutional Ownership & Holdings - NASDAQ.com